“Our Q3 performance is in line with the updated full year guidance provided in November. Q3 DTC revenue declined by 3% (constant currency, “CC”) and wholesale was down 46% CC, resulting in Group revenue down 18% CC. This was driven by a weak USA performance, as expected. Trading in the quarter was volatile and we saw a softer December in line with trends across the industry. Whilst the consumer environment remains challenging, we are taking action to continue to grow our iconic brand and invest in our business”, commented Kenny Wilson, Chief Executive Officer of Dr. Martens.

Third Quarter Results

In the three months to the 31^st of December, the company’s revenue totalled 267.1 million British pounds, down by 21% on a reported basis and by 18% on a constant currency basis, as compared to the same period of last fiscal year.

In the third quarter of the current fiscal year, Dr Martens’ e-commerce channel saw a revenue decline of 9% on a reported basis and 8% on a constant currency basis, and revenue from the retail channel was flat on a reported basis and increased by 3% on a constant currency basis, on a comparable basis to a similar period of fiscal 2023.

The company’s third quarter DTC revenue was down by 5% on a reported basis and 3% on a constant currency basis, as compared to the same quarter of the previous fiscal year. But it’s the performance of the wholesale channel that continues to stand out: its revenue plummeted by 49% on a reported basis and by 46% on a constant currency basis, on a comparable basis to the third quarter of last fiscal year.

“Significant decline was seen in both Americas and EMEA. Wholesale customers continue to have relatively low levels of in-market inventory; however, the timing and level of re-orders is unpredictable, meaning that our visibility over wholesale remains weak”, reads the statement.

Dr. Martens also pointed out that the US consumer market remains the most challenging at present, with total revenue in the Americas region decreasing by 31% on a reported basis and by 26% on a constant currency basis in the third quarter of fiscal 2024, year-over-year. In EMEA, the company’s revenue was down by 15% on a reported basis and constant currency basis, year-over-year, “driven by the wholesale performance”. Meanwhile, the APAC region recorded a revenue decline of 8% on a reported basis and 1% on a constant currency basis, year-over-year.